Summary
Edison International (EIX) announced a significant regulatory development with the California Public Utilities Commission's (CPUC) final decision on Southern California Edison's (SCE) cost of capital for 2026. The decision maintains the existing cost of capital mechanism, establishing authorized capital structures and rates of return for 2025 and 2026. This regulatory clarity is crucial for EIX's future investment and operational planning. In conjunction with this decision, EIX reaffirmed its long-term financial guidance, projecting a 5-7% compound annual growth rate for Core EPS from 2025 to 2028, leading to a 2028 Core EPS of $6.74-$7.14. The company also anticipates a 7-8% annual rate base growth and plans to invest $28-29 billion in its capital plan over the same period. Importantly, EIX stated there will be no annual equity needs from 2025 to 2028. The company highlighted its attractive total shareholder return potential, a combination of its dividend yield and projected EPS growth.
Key Highlights
- 1CPUC issued final decision authorizing SCE's cost of capital for 2026, extending the current mechanism.
- 2Authorized rate of return for 2026 is set at 7.59%, with slight adjustments from 2025's 7.66%.
- 3EIX reaffirms 2025-2028 Core EPS compound annual growth rate target of 5-7%.
- 4Projects 2028 Core EPS in the range of $6.74 to $7.14.
- 5Expects 7-8% compound annual rate base growth from 2024-2028.
- 6Announces a $28-29 billion capital plan for 2025-2028.
- 7Confirms no annual equity needs for the period 2025-2028.